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Author: kemifr Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75379  
Subject: Online Roth Date: 12/2/1999 2:13 PM
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I contributed $2,000 to a Roth IRA this year on my e-trade account. It appears as though I am going to earn over the $95K AGI limit making my contribution ineligible I believe. What are my options at this point?
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Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 15841 of 75379
Subject: Re: Online Roth Date: 12/2/1999 2:17 PM
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When the time comes and you are sure you will be over the AGI limit, contact your custodian. You will essentially be allowed to redesignate the contribution as a traditional IRA.

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Author: Bob78164 Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 15843 of 75379
Subject: Re: Online Roth Date: 12/2/1999 2:28 PM
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kemifr writes:

I contributed $2,000 to a Roth IRA this year on my e-trade account. It appears as though I am going to earn over the $95K AGI limit making my contribution ineligible I believe. What are my options at this point?

I reply:

If your AGI is in the $95,000-$110,000 range (assuming that you're single), you can still make a partial contribution to a Roth. In that case, or in case you make more than $110,000, you may "recharacterize" all or part of the contribution to a "regular" IRA, which may or may not be deductible, depending on whether you're a participant in a qualified retirement plan. If you want to get the money out, you can, and if you act before April 17, 2000, I think you'll only pay taxes on the earnings. I may be wrong about that last comment, though. --Bob

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Author: Canth Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 15897 of 75379
Subject: Re: Online Roth Date: 12/6/1999 10:28 AM
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Another thing you can look into is what you can do to lower your AGI for this year.

Pay your property taxes for next year now (in Dec)
Make the Charitable contributions for the next six months or year now.




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Author: Bob78164 Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 15907 of 75379
Subject: Re: Online Roth Date: 12/6/1999 4:27 PM
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Canth writes:

Another thing you can look into is what you can do to lower your AGI for this year.

Pay your property taxes for next year now (in Dec)
Make the Charitable contributions for the next six months or year now.


I reply:

Although these moves will lower taxable income (assuming the taxpayer itemizes deductions), they won't reduce the AGI by even a penny, and therefore won't affect Roth eligibility. The only ways I'm aware of to reduce the AGI (other than making less money :-( ) are to use a 401(k), a section 125 plan, and to realize a net capital loss of up to $3000. --Bob

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